Russia can’t continue to prop up Ukraine’s faltering economy, and this responsibility should fall on the US and EU, which have recognized the authorities in Kiev but not yet given one dollar to support the economy, President Putin has said.

“The situation is - to put it kindly, strange. It’s known our
partners in Europe have recognized the legitimacy of the
government in Kiev, yet have done nothing to support Ukraine –
not even one dollar or one euro,” Putin said at a meeting
with government officials at his residence outside of Moscow.

“The Russian Federation doesn’t recognize the legitimacy of
the authorities in Kiev, but it keeps providing economic support
and subsidizing the economy of Ukraine with hundreds of millions
and billions of dollars. This situation can’t last
indefinitely,” Putin said.

In December, Russia provided Ukraine with a $3 billion loan,
which was a part of a bigger $15 billion aid package agreed the same month. Russia also offered a 33
percent gas price discount that would have saved more than $7.5
billion.

The head of the International Monetary Fund Christine Lagarde
said that Russia’s loan tranche last year was
vital for the collapsing Ukraine economy.

In the meantime, the West hasn’t yet effectively provided any
money to Ukraine. The International Monetary Fund has agreed to provide Ukraine a bailout package of up to
$18 billion, but the details are still being worked out. The US
has also promised $1 billion in loan guarantees to
help the collapsing Ukraine economy.

Gassing over gas

At the same meeting, Russia’s Ministry of Energy Alexander Novak
said that Ukraine’s debt to state monopoly Gazprom stands at
$2.238 billion.

Ukraine has not paid for Russian gas since the beginning of 2013,
and with all discounts withdrawn it is now charged $485 per 1,000 cubic
meters of gas.

This is a price Ukraine says it will not pay, claiming it is much
higher than most of the rest of Europe pays for Russian gas.

President Putin also asked Gazprom to refrain from asking advance
payments from Ukraine, until further consultations are held.

“This certainly complies with the contract, but given the
difficult situation in Ukraine and the incompleteness of our
negotiations with the EU, I would ask the Government to hold off
on such measures [advance payments - RT] that appear in the
contract until additional consultations, if, of course, our
partners agree to such consultations.”

“If they don’t agree, we’ll act according to the existing
contract,” Putin added.

Ukraine’s reserves of natural gas have dwindled to 6.5 billion
cubic meters which is not enough for the coming winter, Gazprom’s
Deputy Chairman Vitaly Markelov said at the meeting.

Moscow turned off gas transit through Ukraine to Europe in the
winter of 2006 and 2009 after Kiev failed to pay its Gazprom
bill, leaving parts of Europe without energy during the winter
months. Moscow has accused Ukraine of siphoning off supplies
intended for Europe during these periods, an accusation Kiev
refutes.